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Bidvest is going to review all its investments that fall outside its key seven pillars over the next two to three years to see whether they still fit within the group, according to CEO Lindsay Ralphs.
Bidvest’s key seven divisions are: Automotive, Commercial Productions, Electrical, Financial Services, Freight, Office and Print, and Services.
The group holds investments in Bidvest Namibia (52%), Bidvest Properties, Adcock Ingram (38.4%), Comair (27.2%), Cullinan Holdings (19.5%), Ontime Automotive (100%), the DH Mansfield Group (80%) in the UK, Mumbai Airport (6.75%), and other listed and unlisted investments.
“Our other investments require close scrutiny,” Ralphs said.
Bidvest would ultimately exit from its interest in the Mumbai Airport, he said.
The conglomerate was still looking at bolt-on acquisitions after having agreed to buy BrandCorp from Ethos Private Equity and management, he added.
The Competition Commission this week found horizontal overlaps in the business activities of Bidvest and BrandCorp in the market for the wholesale and distribution of the following products: electric power tools, general tools and hardware, locks, water pumps, generators, fasteners and fittings, tapes, table and kitchenware, personal protective clothing and general lighting. However, it determined that there was sufficient competition in the market to
ensure that the merger would not affect customers.
As a result, the watchdog recommended the unconditional approval of the merger.
Bidvest, which employs about 112 000 people, was looking internationally for niche acquisitions, especially in the services or light industrial business spaces, Ralphs said.
“We won’t rush our international expansion. We have very low levels of debt and we have a war chest that we intend to spend,” he said.
A number of private equity companies were looking to sell assets in future, he said.
Bidvest could do an acquisition deal of between R5 billion and R8 billion.
“We are looking for good, solid assets and capital has been allocated for acquisitions,” Ralphs said.
He said the turmoil at National Treasury centring on Finance Minister Pravin Gordhan was making trading difficult.
“We are making a plea to encourage the political leaders to settle down,” Ralphs said.
“As one of South Africa’s largest employers and a significant investor in the local economy, Bidvest shares the concerns that have been raised by business leadership relating to the ongoing disruption of some of our country’s most important economic institutions. We appeal for a rapid resolution of this current state of affairs,” Bidvest said in a statement.
